NO it is definitely not ok to smoke.
There is only one safe thing to do with it - throw it away.
It is not safe for cooking with or making any sort of extractions either.
The mould spores are toxic, no matter what/how you prepare it.
Smoking it will damage your lungs and can lead to infections like bronchitis or pneumonia.
It is not a joke. It certainly is not worth the risk.
Unfortunately as growers we have or will have to one day all deal with this and sadly it is only safe for the garbage can.
Do not compost it either, the spores will multiply rapidly in any back yard composter and you will face problems for years.
These things teach us that we need to change our growing methods and how to avoid letting this happen again.
Hope this helps, Organoman.